Received an HMRC nudge letter? What it means and what to do

What is an HMRC nudge letter?

In short: a nudge letter is a letter HMRC sends to groups of people when information it holds suggests their tax affairs may be wrong. It is not a formal enquiry, but it is a warning. HMRC expects you to check your affairs and put anything wrong right.

Where HMRC gets its information

• Overseas banks and investments through the Common Reporting Standard.
• Online platforms such as marketplaces, ride-hailing and holiday-let sites, which report sellers’ income.
• Crypto exchanges and, from 2026, the new crypto reporting framework.
• Land Registry, letting agents and deposit schemes for rental income and property sales.

What to do if you get one

1. Do not ignore it. If HMRC later opens an enquiry, the disclosure becomes prompted and penalties are higher.
2. Check the deadline. Many letters ask you to reply or sign a certificate, often within 30 days.
3. Get advice before signing anything. A certificate saying your affairs are correct, when they are not, can turn a careless error into a deliberate one.
4. Make a disclosure if needed through the Digital Disclosure Service, the Worldwide Disclosure Facility or the Let Property Campaign.

Work out what you might owe

Use our free HMRC disclosure calculator for an estimate of tax, interest and penalties, and read which disclosure route fits you. For offshore letters, see HMRC letters about income or assets abroad.